USD/CNH may fall 209 - 309 pips

Our pivot point is at 7.1110.

Our preference

Under pressure below 7.1110.

Alternative scenario

The upside breakout of 7.1110, would call for 7.1278 and 7.1378.

Comment

The RSI is below its neutrality area at 50. The MACD is positive and below its signal line. The MACD must penetrate its zero line to expect further downside. Moreover, the price is trading under both its 20 and 50 period moving average (respectively at 7.0969 and 7.0960).

Supports and resistances

7.1378 **

7.1278 *

7.1110 **

7.1044

7.0951 last

7.0742

7.0642 **

7.0542 *

7.0442 **

Number of asterisks represents the strength of support and resistance levels.